Natural
Gas
price
(XNG/USD)
is
unable
to
extend
the
bounce
it
triggered
on
Monday
and
trades
steady
in
a
tight
range
on
Wednesday.
The
more
than
ten-day
correction
finally
snapped
after
Natural
Gas
reached
a
pivotal
level
at
$2.29
and
has
been
afloat
since
then.
Traders
are
on
the
lookout
for
any
news
from
the
Freeport
production
plant
in
the
US
after
storm
Beryl
forced
to
reduce
production
sharply
to
only
20%,
creating
uncertainty
about
Gas
deliveries
for
Europe
and
other
parts
of
the
world.
Meanwhile,
the
US
Dollar
Index
(DXY),
which
tracks
the
Greenback’s
value
against
six
major
currencies,
is
also
having
some
issues.
US
Federal
Reserve
(Fed)
Chairman
Jerome
Powell
was
unable
to
deliver
anything
new
in
his
semi-annual
testimony
before
the
US
Congress.
Traders
are
facing
boredom
in
hearing
the
same
repeated
message
again
that
it
is
too
early
to
cut
interest
rates.
Natural
Gas
is
trading
at
$2.35 per
MMBtu
at
the
time
of
writing.
Natural
Gas
price
has
bounced
right
off
the
support
level
FXStreet
mentioned
in
previous
articles
at
$2.29
on
Monday,
with
the
100-day
Simple
Moving
Average
(SMA)
alongside
the
green
ascending
trend
line
in
the
chart
below
as
support.
The
bounce,
though,
is
not
really
playing
out
as
Gas
prices
are
rather
going
sideways.
Markets
will
await
a
catalyst
to
either
retest
that
support
again
or
send
Gas
prices
higher.
The
200-day
SMA
is
the
first
force
to
reckon
with
on
the
upside,
near
$2.51,
closely
followed
by
the
55-day
SMA
at
$2.62.
Once
back
above,
the
pivotal
level
near
$3.08
(March
6,
2023,
high)
remains
key
resistance
after
its
false
break
last
week.
On
the
other
hand,
the
support
level,
which
could
mean
some
buying
opportunities,
is
$2.29,
the
100-day
SMA
that
falls
in
line
with
the
ascending
trend
line
since
mid-February.
In
case
that
level
does
not
hold
as
support,
look
for
the
pivotal
level
near
$2.13,
which
has
acted
as
a
cap
and
floor
in
the
past.
Natural
Gas:
Daily
Chart
Supply
and
demand
dynamics
are
a
key
factor
influencing
Natural
Gas
prices,
and
are
themselves
influenced
by
global
economic
growth,
industrial
activity,
population
growth,
production
levels,
and
inventories.
The
weather
impacts
Natural
Gas
prices
because
more
Gas
is
used
during
cold
winters
and
hot
summers
for
heating
and
cooling.
Competition
from
other
energy
sources
impacts
prices
as
consumers
may
switch
to
cheaper
sources.
Geopolitical
events
are
factors
as
exemplified
by
the
war
in
Ukraine.
Government
policies
relating
to
extraction,
transportation,
and
environmental
issues
also
impact
prices.
The
main
economic
release
influencing
Natural
Gas
prices
is
the
weekly
inventory
bulletin
from
the
Energy
Information
Administration
(EIA),
a
US
government
agency
that
produces
US
gas
market
data.
The
EIA
Gas
bulletin
usually
comes
out
on
Thursday
at
14:30
GMT,
a
day
after
the
EIA
publishes
its
weekly
Oil
bulletin.
Economic
data
from
large
consumers
of
Natural
Gas
can
impact
supply
and
demand,
the
largest
of
which
include
China,
Germany
and
Japan.
Natural
Gas
is
primarily
priced
and
traded
in
US
Dollars,
thus
economic
releases
impacting
the
US
Dollar
are
also
factors.
The
US
Dollar
is
the
world’s
reserve
currency
and
most
commodities,
including
Natural
Gas
are
priced
and
traded
on
international
markets
in
US
Dollars.
As
such,
the
value
of
the
US
Dollar
is
a
factor
in
the
price
of
Natural
Gas,
because
if
the
Dollar
strengthens
it
means
less
Dollars
are
required
to
buy
the
same
volume
of
Gas
(the
price
falls),
and
vice
versa
if
USD
strengthens.
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